There are unconfirmed reports that the government has decided a formula that will see the House Rent Allowance hiked from the current rates. Sources indicate that the HRA could be 27%, 18% (for X, Y and Z city category) and 9% up by one stage from the existing 24%, 16% and 8% recommended ny the seventh pay commission. Currently the recommendations is the HRA will be hike to 27%, 18% and 9% one the DA reaches 50%.

The central government employees’ unions leader said that the proposed house rent is not enough for employees to make a living in cities. They urged government to hlke the new HRA keeping in mind the House Rent prices prevalent in the market. The confederation had submitted a memorandum which demands HRA rates of 60%, 40% and 20%.